Brief: Friwo Announces Restructuring Plans and Cuts 2019 Forecasts

FRIWO AG

09/12/2019 16:48

Dec 9 (Reuters) - FRIWO AG  CEAG.DE :
    * ADOPTS TRANSFORMATION PROGRAM FOR GROWTH AND PROFITABILITY
AND
ADJUSTS FORECASTS FOR 2019 DUE TO HIGH SPECIAL CHARGES
    * RESTRUCTURING PROGRAM TO RUN UNTIL THE END OF 2021
    * PLANS TO RELOCATE SUBSTANTIAL PARTS OF PRODUCTS THAT ARE
CURRENTLY PRODUCED AT HEADQUARTERS IN OSTBEVERN AND IN POLAND TO
FRIWO PLANT NEAR HO CHI MINH CITY IN VIETNAM
    * FOR FY 2019, SEES GROUP SALES OF AROUND € 100 MILLION, A
NEGATIVE EBIT OF AROUND € 15 MILLION AND A CORRESPONDING ANNUAL
LOSS
    * UPON COMPLETION OF TRANSFORMATION, FRIWO AIMS AT GROWING
GROUP
SALES AND EBIT MARGIN IN HIGHER SINGLE-DIGIT PERCENT RANGE
    * TARGETS TO ENABLE FURTHER GROWTH AS WELL AS DIVIDEND
PAYMENTS
    * PLANS TO SIGNIFICANTLY STREAMLINE THE OVERHEAD STRUCTURES
IN
GERMANY
    * FURTHER MEASURES ARE AIMED AT PROCESS AND QUALITY
IMPROVEMENTS,
ABOVE ALL IN R & D, SALES AND ORDER PROCESSING
    * FROM 2022, PLANNED MEASURES SHOULD LEAD TO SUSTAINABLE
IMPROVEMENT IN GROUP EBIT OF AROUND EUR 8 MILLION / YEAR

Source text for Eikon:  ID:nEQ35DNcba 
Further company coverage:  CEAG.DE 

 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 778 51 10;))